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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 1994
Commission File Number 1-6563
SAFECO CORPORATION
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(Exact name of registrant as specified in its charter)
Washington 91-0742146
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(State of Incorporation) (I.R.S. Employer
Identification No.)
SAFECO Plaza, Seattle, Washington 98185
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(Address of principal executive offices)
Registrant's Telephone Number, Including Area Code (206) 545-5000
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Item 5. Other Events
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SAFECO Corporation's Press Release dated February 3, 1994 - see below
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
SAFECO CORPORATION
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(Registrant)
BOH A. DICKEY
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Boh A. Dickey
Executive Vice President and
Dated: February 4, 1994 Chief Financial Officer
ROD A. PIERSON
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Rod A. Pierson
Senior Vice President, Secretary,
Controller and Chief Accounting
Dated: February 4, 1994 Officer
SAFECO EXPECTS EARTHQUAKE LOSSES
TO EXCEED $50 MILLION; EXCESS IS REINSURED
(SEATTLE, Feb. 3, 1994) - Based on claims information presently
available, SAFECO Corporation today announced that it expects its losses
from the January 17 earthquake in Southern California to exceed $50 million,
the threshold at which the company's reinsurance coverage begins, according
to Boh A. Dickey, SAFECO's Executive Vice President and Chief Financial
Officer.
Under SAFECO's catastrophe reinsurance program, the company is reimbursed
for 90% of the losses between $50 million and $200 million. To date,
approximately 5,500 claims have been reported.
"Because of the extensive damage to communications and transportation
systems in the earthquake area, and the time it takes to complete accurate
surveys and inventories on homes damaged in earthquakes, it will be some time
before a reasonable estimate of the company's losses can be made," Dickey
said. To serve their customers, the company has 376 adjusters, dedicated
solely to the earthquake claims.
In addition, Dickey said, SAFECO's leased branch office in Van Nuys,
which housed 160 employees and is responsible for the company's business
in the earthqake area, was severely damaged and is uninhabitable. The
company has leased alternative space for its Van Nuys operations in Glendale,
and expects to begin moving in within the next week.
Meanwhile, SAFECO personnel in the company's Fountain Valley (Calif.)
office and in other cities across the country have been able to assist with
the day-to-day business activities while continuing to provide the most
responsive claims service possible to earthquake victims.
SAFECO also announced that the company's losses from the recent freezing
and severe winter weather in the Midwest and east coast are estimated to be
approximately $5 million.
